Cesarnc's market talk, gossips, rumours & fun

DOW JONES NEWSWIRES The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3-1/2 percent.
The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.
The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.
Appreciable downside risks to growth remain. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Eric S. Rosengren; and Kevin M. Warsh. Voting against was William Poole, who did not believe that current conditions justified policy action before the regularly scheduled meeting next week. Absent and not voting was Frederic S. Mishkin.
In a related action, the Board of Governors approved a 75-basis-point decrease in the discount rate to 4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Chicago and Minneapolis.
(END) Dow Jones Newswires
January 22, 2008 08:25 ET (13:25 GMT)

That's a mover

Just the perfect news for the week. My internet provider at home got some technical BS error. My mt4 is not working at all so i cant trade late London at NY. Called the CS and got reply that it takes until friday to fix it.

Yup...and the ECB guys are pi**ed:

2008.01.22 13:26:35 ECB's Stark: Any Artificial Output Stimulus Doomed To Fail

Dow back up to -371. Let's see how the cut will impact the markets.

May spur volatility, but it will be today's close that will matter

BTW, I think it's a good day to stay out, watching. All talks from Fed, Bush and Treasurys ended up in more selloff... If this move from Fed is seen as "things are worse than we expected", then shit will hit the fan for good

So now we know how to decode the Fed.... I even thoght about this before but didn't dare to risk announcing it ;-)

So here is what it means:

Additional:0.25
Substantive:0.25
Action:0.25 = 0.75

Actual GJ's 1hr candle is CREEPY

these move on geppy from rate cut ??

You know, the fed is always late when it comes to reacting to reality This emergency cut of a whopping .75% tells us that the fed is finally seeing things as they really are..... A recession.

should've listened to Greenspan, ben. now it is a bit too late. U see, a .75% cut may not soak in until another few months

now what do i gather from this? more market selling....the bullish rally will be shortlived

Yup, This is going to be one hellofa MONSTER PB

Yeah... If the '"too little, too late" sentiment hits the market... Let's watch today and keep eyes on the newswires

LOL - I've got a 203 pip 1 min candle......glad I wasnt short.....

Edit:....until after that candle :-)

May have done something stupid here but I just shorted EUR/USD at 1.4550

BCE will have to wake up and smell the coffee... things are BAD! And the market better start realizing that and make me some pips!

I guess Bernanke is the co-author of "How to make 5,000 pips in 1 session"

Hosh Hosh..have u ever feeling so lucky for not put a SL? well..this is my first experience of doing so.DAMNNNN im feeling so lucky but in the other hand i know this is bad for my trading experience.Shorting bp/jy on 207..and it fly to 209.40ish..holly crap.

Agreed! A .75 means the US economy is in bad shape. I beleive the rally today (if there is one) will be short lived. Whipsaw anyone?

I think we can call it "The Candle of the Year" already

That's why I'm sooo NOT jumping in the market inline with the cut, today.